When Texas deregulated its electricity market in 2002, it gave consumers the right to choose their electric supplier. Because of this, many new companies sprung up. To date, there are more than 100 registered retail electric companies in Texas – all competing for your business.

One of the first things you should look for is stability because if your electric company goes out of business, it can be a nightmare. Following is why and what happens when an energy supplier goes out of business.

If your electric provider goes out of business, the Public Utility Commission of Texas takes over customer accounts and selects a provider – a Provider of Last Resort (POLR). What is a POLR?

A POLR is any firm qualified under Texas law to provided electricity services to consumers. They act as sort of a safety net for consumers in the event that their current electricity company goes out of business. While on the face of it, this is a good thing, it can lead to some unhappy customers. Why/how?

Their rates may be higher;

Their contractual terms may not suit your needs; and/or

They may not have programs for consumers to help defray the cost of electricity.

Prepaid Electricity Plans; No Deposit Electricity Plans; Plans for Seniors; Etc.

When you choose an electric company, you do so based on your individual needs. What if you have bad credit and in the past had a prepaid electricity plan that was costing you double or triple what others were paying? You chose your last electric company because they allowed you to get off this type of plan.

But, the POLR you’re forced to go with because your last company went out of business may have different rules.

This is why it pays to choose a Texas electricity company that is stable and has been around a while. Most of these conventional companies have no-deposit electricity service plans, plans for seniors, victims of domestic violence and other options for consumers who face challenges.

So do your due diligence – and choose your Texas electricity supplier wisely.